Tuesday, 15 December 2020

Analyst: iPhone production report supports 'super cycle' argument

 Analyst: iPhone production report supports 'super cycle' argument

According to foreign media AppleInsider reported that investment bank Wedbush said that the recent reports about iPhone production growth is only the latest signs-iPhone 12 does meet the initial publicity.In a report to investors seen by AppleInsider, chief analyst Daniel Ives quoted a report in the Nikkei Asia Review on Tuesday that Apple plans to produce as many as 96 million iPhones in the first half of 2021.

Ives wrote that this means that the smart model production will grow by 30% year-on-year, which far exceeds Wall Street's current expectations.

The analyst said the recent report was consistent with the results of the Wedbush supply chain survey, which showed that Apple is expected to ship 230 million units in 2021.Ives believes that the current trend indicates that Apple may have a bull market, sales may exceed 240 million units, breaking the record of 231 million units set in 2015.

In addition, he added that all this suggests that the previously proposed iPhone 12”super cycle " is in progress.The investment bank continues to expect shipments of Apple's iPhone 12 and iPhone 12 Pro to reach 80 million units in the initial release phase,a difficult target to achieve.

Wedbush initially thought 350 million of the 950 million iPhones were currently in the upgrade window.Ives pointed out that since China is still a core part of the proposed“super cycle”, there are signs that Apple is about to usher in an important holiday season, it will usher in an unprecedented upgrade cycle.

Based on Wedbush's overall valuation of Apple's fiscal year 2022, analysts kept their 12-month target share price unchanged at $ 160.The valuation given by Ives is $ 1.1 trillion in the services business and $ 1.7 trillion in the hardware business.

Ives believes that there is a growing body of evidence to prove this.Ives believes the bull market will raise the target price to $ 200, based on an increase in the valuation of services and hardware by $ 1.3 trillion and $ 2.2 trillion, respectively, in 2022.

Apple's current share price on the Nasdaq is $ 126.81, up 4.13.